RADNOR, PA — Avantor Inc. (NYSE: AVTR) raised its 2026 outlook for organic revenue growth, adjusted earnings and free cash flow after third-quarter sales increased 4.6%, marking a return to year-over-year growth for the Radnor-based laboratory supplies and life sciences company.
Revenue reached $1.70 billion for the three months ended Sept. 30, 2026, compared with approximately $1.62 billion a year earlier. Organic sales, which exclude currency effects, increased 5.2%, exceeding management’s expectations.
The improvement was driven by growth across both operating segments, although profitability remained under pressure in the company’s larger distribution business.
Net income totaled $203.4 million, or 30 cents per diluted share, reversing a $711.8 million loss in the third quarter of 2025.
Adjusted net income, which excludes certain items affecting reported results, declined to $146.4 million from $151.1 million a year earlier. Adjusted earnings were 22 cents per diluted share.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $256.9 million, representing a 15.1% margin. Adjusted operating income was $227.6 million, with a 13.4% margin.
Avantor’s VWR Distribution & Services segment generated $1.23 billion in sales, up 5% from $1.18 billion a year earlier. Organic revenue increased 5.8%, reflecting an acceleration in the segment’s growth.
However, adjusted operating income fell to $119.4 million from $132 million, with the operating margin declining to 9.7%.
The company attributed the margin pressure to an unfavorable product mix and higher selling, general and administrative expenses, which more than offset the benefit of increased sales volume.
Bioscience & Medtech Products, Avantor’s smaller but higher-margin segment, returned to organic growth during the quarter.
Revenue increased 3.5% to $464.5 million from $448.8 million, while organic sales rose 3.6%.
Adjusted operating income increased to $123.4 million from $119.3 million. The segment maintained a 26.6% adjusted operating margin as higher sales volume and commercial improvements offset increased operating expenses.
Chief Executive Officer Emmanuel Ligner characterized the return to revenue growth as progress in the company’s turnaround efforts, while acknowledging that additional work remains.
“We are not done with our Revival journey yet,” Ligner stated, referring to Avantor’s business improvement program.
The company’s financial position also benefited from cash generation during the quarter.
Operating cash flow totaled $195.1 million, while free cash flow reached $156.2 million.
As of Sept. 30, Avantor reported $3.70 billion in gross debt and $464.3 million in cash and cash equivalents.
Its GAAP net leverage ratio stood at 9.6 times, compared with adjusted net leverage of 3.1 times.
Management raised its full-year 2026 guidance for organic revenue growth, adjusted earnings per share and free cash flow following the stronger-than-expected third-quarter performance.
The results point to improving demand and sales execution across Avantor’s businesses, with continued pressure on distribution margins tempering the benefit of higher revenue.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.